STRONG Japanese buying, backed by a belief that any further increase in U.S. interest rates may have been put on hold in the wake of hurricane Katrina, has helped lift the price of gold closer to the $US450 an ounce mark.
In Tokyo, the gold price in the local currency has reached its highest in 13 years, at 1591 yen per gram - $US14.58/gm or $US453/oz.
Akira Doi from Daiichi Commodities told Reuters that yen-denominated gold gathered strength after seeing the New York gold price rise sharply.
"Sentiment is strong," Doi said. "It is mainly backed by strong energy prices and as dollar-based gold prices turn very strong I'm sure that Tocom (Tokyo futures market) gold will hit 1600 yen very soon."
The key date for the gold price in the U.S. is the September 20 meeting of the Federal Reserve where interest rates will be the top item on the agenda.
If the steady upward push in interest rates is halted it will be seen as a positive sign for the gold price.
Gold closed on Friday in New York at a buy quote of $US448.50, with sellers asking $US449, up about 2% on the day. Silver and platinum also edged higher.
